Centurion Property Group has received $18 million in financing for the acquisition of Aspen Ames, a 422-bedroom student housing property serving students at the Iowa State University in Ames, Iowa. Seven Hills Realty Trust provided the loan, while JLL helped structure the note on behalf of the borrower. The floating-rate bridge loan includes a three-year initial term and two one-year extension options.
Built in 2018, the community encompasses four two- and three-story buildings on nearly 9 acres at 3306 Lincoln Way. The buildings offer a mix of two-, three- and four-bedroom apartments, ranging from 815 to 1,350 square feet. Amenities include a swimming pool, a clubhouse and approximately 220 parking spaces.
Centurion has some renovation plans for the property, and will add a pet park and basketball court, a company representative told Multi-Housing News. In addition, the community will be rebranded as The ONE at Ames and will be managed by Asset Living.
Located less than a mile from the Iowa State University campus, the community is within walking distance of the Southwest Recreation Complex and the retail and dining options along Lincoln Way.
Investing in Iowa student housing
“The property fits our acquisition criteria of purchasing value-add student housing properties at public, Power-5 Universities. We see an opportunity to increase the net operating income through management efficiencies and in turn give our investors above-market returns,” the owner’s Managing Partner & Chief Operating Officer Aldo Facchi Jr. told MHN.
Out of the 31,822 students enrolled at Iowa State University in the 2020-2021 academic year, approximately 38 percent represented out-of-state students, data from the National Council of Education Statistics shows. The cost of off-campus accommodation rose by 0.5 percent, to $9,193, over the 2019-2020 term. According to Yardi Matrix, the Iowa State University market is served by 16 purpose-built student housing properties, offering approximately 2,700 off-campus units.
Aspen Heights Partners is the former owner of the Ames asset, Yardi Matrix shows. In 2019, the company and its partner, Safanad, received a $92 million refinancing deal for a three-property student housing portfolio. The deal included Aspen Ames, along with two student communities in Texas and South Carolina.